According to Jinshi, the resilience of the US economy has boosted hopes for the upcoming earnings season, while also reducing the likelihood that the Federal Reserve will turn to rate cuts in the near term. Data expected to be released on Wednesday will show that the US CPI accelerated to 3.4% in March, with the core inflation index at 3.7%. Russ Mould, investment director at AJ Bell, said the CPI data may reinforce the argument that rate cuts are not coming soon. Slowly rising inflation runs counter to the reason the Fed wants to see for rate cuts. HSBC strategist Max Kettner said that the improved economic growth outlook is good for stocks, and the recent stock market setback is temporary, providing a buying opportunity.
